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Section 44ad v/s 44ada - accountancy

vinay (assistant accountant) (28 Points)

28 March 2018

Dear Forum members,

Can anyone please clarify Accountancy as specified in Sec 44ADA relates only to Chartered Accountants? Does Non-chartered accountants earning business income fall under Sec 44ADA or Sec 44AD ?

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28 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (194909 Points)
Replied 28 March 2018

" Can anyone please clarify Accountancy as specified in Sec 44ADA relates only to Chartered Accountants?"

In simple language........ it applies to all the professionals, who are authorized to authenticate financial statements, sign audit reports, and legally permitted to represent assessee to tax authorities/courts.......

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RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 28 March 2018

Dear Sir.,

Then what is the limit except the specified accountants?

For example take myself (Tax Consulting & Accounting services)....

What is my business code?

What is my Profit % limits 8% or 50%...?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (194909 Points)
Replied 28 March 2018

My Dear

Here the query is

" Can anyone please clarify Accountancy as specified in Sec 44ADA relates only to Chartered Accountants?"
While any such (specific) professionals..... can adopt sec. 44ADA........

For sec 44AD...... eligibility creteria for BUSINESS is to be established......

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RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 28 March 2018

Sorry Sir.,
I'm not exactly asking my doubt...

Actually My query is my own Query. Not replied to above query. I ask my own.... 😊😊😊😊😊

In the professionals list of Accountancy is justified myself as "Charted Accountant, Cost Accountant, CMA, Account Technician and Commerce Graduate with Ph.D, M.Phil (who is doing accounting works)....

Then How can I define Myself....!!!

In case I'll file my ITR under presumptive scheme then I use 44ad or 44ada...?

In case I'll file my ITR u/s 44aa then how many percentage declare my profit escape audit...?

I have this doubt when I start my Tax and Accounting works...?

Please give Your Solution...

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (194909 Points)
Replied 28 March 2018

I will suggest a trick.......... Just think,

Most of my doctor (professionals) clients having hospitals declare income under Sec. 44AD, while they declare their clinical receipts u/s. 44ADA !!!

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RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 28 March 2018

Yes SIr...

Their Clinical Receipts are his professional Income... And Hospital's incomes declared u/s 44AD...

So,

As per this view can I move u/s 44AD...?

Bcoz, I'm not a professional. Am I right or wrong Sir...?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (194909 Points)
Replied 28 March 2018

I had already replied earlier.............

......For sec 44AD...... eligibility creteria .............BUSINESS is to be established......

I think you got it.....

RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 28 March 2018

Originally posted by : Dhirajlal Rambhia
	I think you got it..... No Sir...

Really I don't get...

Bcoz., No more establishment in my works. but doing all the works for taxation and Accounts...

How can I understand this...?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (194909 Points)
Replied 28 March 2018

Recently there was a query by S ELAVARASI .......... her client engineer (professional) was not ready for 50%, because he was construction contractor !!! Filed his return u/s. 44AD......

Another........ A chef (profession) cannot declare his consulting charges under presumptive scheme, unless he establishes it as cartering services/ restaurant !!!

Any more example?

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RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 28 March 2018

Dear Sir.,

Sorry for the wrong understanding myself if anything wrong...

The Chef and Engineer are not ready to pay as per professional calculation. But, In Our view both are under Professional... So, They must Pay tax under the limit of 44ada... Please correct if I'm wrong...

As per my understanding (But, not get clarity)
In my work I'm not a professional also my works are not under Business. In this situation...
How to I file ITR based my Income...?
Can I declare 8% profit...?
Can I file Presumptive Taxation scheme as ITR 4 (AY 17-18)...? if not
Can I show 8 percentage profit and File ITR 3 (AY 17-18)...?

Please I'm confused without clarity...!!! 🙏🙏🙏🙏🙏

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (194909 Points)
Replied 28 March 2018

An Example as per your situation..........

A teacher, though 'teaching is a profession' (but not specified as per sec. 44AA), cannot adopt sec. 44ADA.

At the same time his profession cannot be taxed u/s. 44AD.....

So, what we suggest......... file ITR3 as for normal profession, file P&L acc & BS.......... OK?

Now what....... If he establish his work under coaching class !!! ???

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RAJA P M ("Do the Right Thing...!!!") (128106 Points)
Replied 29 March 2018

Thank You for the Details Sir...

How is it applicable for me...?
How To I proceeds my incomes under which head...? In 44ad or 44ada...?

In case I'll file normal provision then how to show the profit @ 8% or 50%...?

Confused for the Profession without Professional... 😢😢😢

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (194909 Points)
Replied 29 March 2018

Well, what will be your TDS deduction?

Practically, it will be better if we discuss matter only after May, 31st; when final TDS figures will be reflected in form 26AS ; because about 3 months before also we had the same discussion........